BUY. Equity Research. PT Link Net, Tbk. 3 rd April 2018 Trading, Advertising Printing and Media. Investment Consideration

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1 3/31/217 4/3/217 5/31/217 6/3/217 7/31/217 8/31/217 9/3/217 1/31/217 11/3/217 12/31/217 1/31/218 2/28/218 PT Link Net, Tbk Equity Research BUY 3 rd April 218 Trading, Advertising Printing and Media Price IDR 5,2 Target Price IDR 6,74 JKSE Index 6, ,8 5,6 5,4 5,2 5, 4,8 4,6 4,4 Last Price Stock Information Volume (') Bloomberg Code LINK IJ Market Cap (IDR bn) 15, week high (IDR) 6, 52-week low (IDR) 4,46 Shares issued (mn) 3, m avg. daily Val (IDR) 5,238 Free float (%) 3.74% Major share holders (%) PT First Media, Tbk 34.82% Asia Link Dewa Pte. Ltd 34.44% Public 3.74% USD/ IDR YE (IDR) ,48 218F (6m-avg) 13,555 6, 5, 4, 3, 2, 1, Investment Consideration Double Digit growth in 217FY During 217, LINK booked double-digit revenue growth of 15.25% from IDR trillion in 216 to IDR 3.4 trillion, as expected with our forecast for 217F of IDR. 3.4 trillion. In the previous year the company also posted a double-digit revenue growth of 15.2% from IDR 2.56 trillion in 215 toidr trillion in 216. EBITDA also grew double digits from IDR trillion to IDR. 2. trillion with an improved margin from 58.4% in 216 to 58.9% in 217. Net income increased 23.1% to IDR 1.1 trillion from IDR billion in the previous year, higher than our forecast 217F of IDR. 972 billion. We estimate the company will maintain their double digit growth and revenue will reach IDR trillion or 13% growth and net income will reach IDR trillion in Million Homes Passed Homes passed in 217 reached 2 million, and increased 174, from the previous year s 1.83 million. The penetration rate reached 28.5% less than 29% in 216. ARPU increased to IDR 421, / month compared to IDR. 47, / month in 216. And up sell transactions increased from 329,31 in 216 to 386,344 in 217. Assuming homes passed will continue growing at a double digit rate, we are expecting the company will reach their 221 homes passed target of 2.8 million. Valuation: Maintain BUY with TP 6,74 represent 3% upside We have a one year target price for LINK of IDR. 6,74, offering investors a potential return of 3%. This would mean the stock trading at 18x 218F PE with EV/EBITDA at 8.8x. We recommend BUY. * We recommend BUY Financial Summary 214A 215A 216A 217A 218F 219F Revenue (IDR. tn) EBITDA (IDR. tn) Net Profit (IDR. tn) EPS (IDR) EBITDA / shares ROA 17% 17% 18% 2% 2% 19% ROE 18% 17% 21% 22% 21% 2% Tot. Debt / Equity (x) Analyst: Eka Rahmawati R eka.rahmah@binaartha.com

2 Chart: Homes Passed YoY 2, 2, 1,826 1,8 1,673 1,6 1,433 1,4 1,194 1, , Sources: Company Chart: Revenue Breakdown, NPM, and EBITDA Margin YoY 4, 7% 3, % 57% 57% 59% 6% 6% 3, 199 5% 2, ,243 1,86 4% 2, % 3% 1, % 28% 22% 26% 2% 1, 1,92 1,46 1,67 5 1, % % Broadband (IDR. Bn) Cable TV (IDR. Bn) Others (IDR. Bn) NPM (%) EBITDA Margin (%) Sources: Company Chart: Revenue, RGU s, ARPU, and Penetration Rate YoY 4, 3,5 3, 2,5 2, 1,5 1, % 3,428.5% 28.4% 2, % 28.2% 2, % 2, % 27.6% 27.4% 27.3% 27.4% % % % 26.6% Revenue (IDR. Bn) RGU's (') ARPU (IDRk/month) Penetration rate (%) Sources: Company

3 Table: Income Statement in IDR Million YoY Income Statement (IDR. Mn) 214A 215A 216A 217A 218F 219F Revenue 2,135,958 2,564,315 2,954,161 3,399,6 3,846,472 4,49,934 Cost of revenue (1,298,73) (1,629,555) (1,832,41) (2,42,122) (2,37,883) (2,645,96) Operating Profit 837, ,76 1,121,751 1,356,938 1,538,589 1,763,974 Others income/ (Expense) (81,351) (78,359) (32,688) (17,517) (19,232) (22,5) Profit Before Tax 755,94 856,41 1,89,63 1,339,421 1,519,356 1,741,924 Taxes (198,17) (216,729) (27,499) (332,143) (379,839) (435,481) NIAT 557, , ,564 1,7,278 1,139,517 1,36,443 Non-controlling Interest (18) (147) (1) (1) (1) (1) Net Income 557,77 639, ,563 1,7,277 1,139,516 1,36,442 EPS (in IDR) EBITDA 1,23, 1,459,968 1,73, 2,, 2,213,687 2,584,716 Table: Cash Flow in IDR Million YoY Cash Flow (In IDR Mn) 214A 215A 216A 217A 218F 219F Net Income 557,77 639, ,563 1,7,277 1,139,516 1,36,442 Depreciation 377,24 491,72 576, ,4 611,4 72,187 Change in WC 67,38 33, ,817 57,763 (33,255) 184,872 Cash From Operating Activities 1,1,985 1,164,61 1,517,264 1,676,44 1,717,661 2,193,51 Capex (881,514) (1,157,953) (891,435) (996,119) (1,277,448) (1,473,197) Cash From Investing Activities (881,514) (1,157,953) (891,435) (996,119) (1,277,448) (1,473,197) Long-term Debts (13,791) (59,891) (31,383) 64,836 (62,492) Others Noncurrent Liabilities 13,975 26, ,611 (14,883) 42,943 39,442 Equity (42,17) (6,96) (522,86) (446,17) (182,254) (29,1) Cash From Financing Activities (131,833) (39,877) (44,578) (461,53) (74,476) (232,51) Net Changes in Cash (11,362) (33,229) 221, , , ,253 Beginning Balance 37,2 358, , ,68 765,948 1,131,685 Ending Balance 358, , ,68 765,948 1,131,685 1,619,938

4 Table: Statement of Financial Position in IDR Million YoY Statement of Financial Position (In IDR Mn) 213A 214A 215A 216A 217A 218F 219F ASSETS CURRENT ASSETS Cash and Cash Equivalents 37,2 358, , ,68 765,948 1,131,685 1,619,938 Trade Accounts Receivable 18, , ,72 324,42 398, , ,985 Others Current Assets 83,466 39,46 37,283 36,71 68,749 88,94 78,89 Total Current Assets 562, ,96 64,784 97,153 1,233,624 1,69,438 2,164,12 NONCURRENT ASSETS Fixed Assets 2,295,36 2,693,597 3,492,811 3,87,397 4,117,43 4,728,83 5,431,17 Long-term prepayment 125,4 114, 12,6 95,533 83,8 94,83 18,722 Other Noncurrent Assets 242, ,52 237, , , ,99 429,921 Total Noncurrent Assets 2,662,825 3,167,99 3,833,332 4,147,883 4,532,62 5,198,65 5,969,661 TOTAL ASSETS 3,225,24 3,742,5 4,438,116 5,55,36 5,766,226 6,88,88 8,133,672 LIABILITIES AND EQUITY LIABILITIES CURRENT LIABILITIES Short-term Bank Loans 81,393 9,651 69,832 3,566 4,786 31,434 Trade Payables 178, , ,24 232,937 32, , ,299 Accruals 118, , ,792 47, ,88 423,19 518,787 Others Current Liabilities 81, ,3 113, 179, , , ,223 Total Current Liabilities 46, , ,828 85,763 1,15, ,55 1,243,743 NONCURRENT LIABILITIES Long-term bank 195,65 91,274 31,383 64,836 2,343 Others Noncurrent Liabilities 5,633 64,68 91, , ,31 269,253 38,695 Total Noncurrent Liabilities 245, , , , ,31 334,89 311,39 TOTAL LIABILITIES 76,136 77,247 77,793 1,91,956 1,242,39 1,326,639 1,554,782 Non-controlling interest EQUITY 2,519,68 3,34,757 3,667,175 3,963,79 4,524,185 5,481,379 6,578,79 TOTAL LIABILITIES & EQUITY 3,225,24 3,742,5 4,438,116 5,55,36 5,766,226 6,88,88 8,133,672

5 Table: Ratio Highlights YoY Growth (% YoY) 214A 215A 216A 217A 218F 219F Sales 28% 2% 15% 15% 13% 15% OP 41% 12% 2% 21% 13% 15% EBITDA 35% 19% 18% 16% 11% 17% NP 54% 15% 28% 23% 13% 15% EPS 54% 15% 28% 23% 13% 15% Profitability Operating Margin(%) 39% 36% 38% 4% 4% 4% EBITDA margin(%) 58% 57% 59% 59% 58% 59% NET Profit margin(%) 26% 25% 28% 3% 3% 3% ROA(%) 17% 17% 18% 2% 2% 19% ROE(%) 18% 17% 21% 22% 21% 2% Stability Tot debt/ equity (x) Current Ratio (X) Per Share data (IDR) EPS EBITDA/share

6 Stock Ratings: Buy : a recommendation to purchase the security with upside potential of 2% or greater Hold : a recommendation to neither buy nor sell a security with upside potential of -19%. Sel : a recommendation to close out a long position in a security with upside potential below % or negative. RESEARCH TEAM (62 21) ext. 611 Disclaimer; PT Binaartha Sekuritas has compiled this report in good faith, using information believed to be reliable. PT Binaartha Sekuritas and its analysts take no responsibility for the accuracy of the information contained in this report. This report has been produced for distribution to clients of PT Binaartha Sekuritas only. This report is not an invitation to buy or sell any security. PT Binaartha Sekuritas may have used the information in this report prior to publication. The company or its clients may have positions in or may from time to time buy or sell the securities mentioned in this report or other related securities.